Tata Mutual Fund has announced the launch of a New Fund Offer, Tata Capital Protection Oriented Fund - Series II, a close ended capital protection oriented fund. The tenure of the scheme is 3 years.
The fund has an orientation to protect your capital by primarily investing in AAA or equivalent rated high quality debt securities & money market instruments. The fund also explores the opportunities for capital appreciation by investing part of its funds corpus in equities.
The scheme will allocate 82% to 100% of its net assets in Debt and Money Market Instruments with low to medium risk profile. Whereas, remaining 0% to 18% of its net assets will be invested in Equity & equity related instruments with high risk profile. Exposure to derivatives (including debt and equity) will be limited to 50% of the net asset. Within the overall limit of 50%, equity derivative position shall be maximum 18% of the net assets of the scheme.
The New Fund Offer price for the scheme is Rs. 10 per unit. The new issue opens on 6th July, 2012 for subscription and closes on 20th July 2012.
Currently, two options are available under the scheme viz. Growth and Dividend (Payout facility).
The minimum application amount is Rs. 10,000 and in multiples of Rs. 10 thereafter.
Entry load and exit load charge are not applicable for the scheme. The scheme is available for subscription through BSE StAR & NSE MFSS platforms.
The scheme's performance will be benchmarked against CRISIL MIP Blended Index.
* Nature & Investment Objective: Tata Capital Protection Oriented Fund Series II (TCPOF): A 3 years close ended Capital Protection Oriented Fund. The primary investment objective of scheme is to seek income & minimize risk of capital loss by investing in a portfolio of fixed income securities. The Scheme may invest a part of the assets in equity and equity related instruments to seek capital appreciation. The scheme is oriented towards protection of capital and 'not guaranteed returns'. The orientation towards protection of the capital originates from the portfolio structure of the scheme & not from any bank guarantee, insurance cover etc. There is no assurance that the investment objective of the scheme will be achieved, as actual market movements may be at variance with anticipated trends. The Mutual Fund/AMC and its empanelled brokers have not given and shall not give any indicative portfolio and indicative yield in any communication, in any manner whatsoever. Investors are advised not to rely on any communication regarding indicative yield/portfolio with regard to the scheme. Minimum Investment Amount: Rs. 10,000 and in multiples of Re. 1 thereafter. Two Options for Investment: Dividend Option (Payout facility) and Growth Option.
* Applicable Load Structure: Entry Load: Not Applicable. Exit Load: Not Applicable (Being a close ended scheme, the fund will not repurchase units of a capital protection oriented scheme before end of the maturity period. Accordingly, the units shall be redeemed only upon the maturity of the schemes i.e at the end of 3 years in case).
* NFO - SERIES II opens on: 6th July, 2012. Closes on: 20th July, 2012.
* Sale at Rs. 10/- per unit at face value during the New Fund Offer.
* Liquidity: The Scheme is a close ended Scheme. The units of the scheme is not open for redemption and repurchase before the end of maturity of the scheme. The NAV of the scheme will be declared on all business days. The Fund does not intend to buy the units back till the maturity of the scheme. However, in order to provide the liquidity to the investors the scheme is proposed to be listed on the BSE.
* NAV Disclosure: On all business days.
* Asset Allocation: Debt and Money Market Instruments: 82-100%. Equity & equity related: 0- 18%. Derivatives (including debt and equity) Exposure: Upto 50% of net assets. Within the overall limit of 50%, equity derivative position shall be maximum 18% of the net assets of the scheme. It is expected that above investment pattern will be achieved within 30 days from the date of allotment of units under the scheme. The Scheme will invest only in such debt securities which mature on or before the maturity of the scheme.
* Statutory Details: Constitution: Tata Mutual Fund has been set up as a trust under the Indian Trusts Act, 1882.
* Sponsors & Settlors: Tata Sons Ltd., Tata Investment Corporation Ltd.
* Investment Manager: Tata Asset Management Ltd.
* Trustee: Tata Trustee Co. Ltd. • Scheme Specific Risk Factors: Ability of portfolio to meet capital protection on maturity can be impacted by interest rate movements, credit defaults by bonds, expenses and reinvestment risk. Main risks which impact NAV are market, capital loss, liquidity and price. The scheme will aim to protect the capital only at maturity & the NAV of the scheme may go up or down in between.
* The scheme is not offering any assured/guaranteed returns to investors. Please consult your tax advisor regarding applicability of prevailing tax laws. For Scheme Information Document (SID) & Application forms, please contact your nearest Collection Center / AMC Office.